Samia spends Sh8.4 trillion for various projects, PM says

Dodoma. In a bid to attract and strengthen the country’s investment portfolio, Premier Kassim Majaliwa revealed yesterday in the parliament that President Samia’s administration has so far spent more than Sh8.64 trillion for various projects that are meant to strengthen the business climate.

The money spent on all development projects in the first seven months accounts for 57.6 percent of the Sh15.006 trillion development budget for the fiscal year 2022/23.

The money went into financing the country’s Standard Gauge Railway (SGR), which in fact intends to replace the rather aged and less efficient metre-gauge railway system established during the colonial era.

Once commissioned for service, the SGR trains would operate at an average speed of 160km per hour, thus cutting the time between Dar and Morogoro to about two hours from the current four-hour journey by buses and five hours by train on the old metre-gauge railway.

Other development projects, according to Premier Majaliwa, that are implemented through the said funds meant to instigate and attract both local and international businesses include the improvement of various airports in the country.

Of course, other development projects that were executed through the said funds included the construction of road infrastructure at the tarmac level, the reforming of Tanzania’s energy sector, as well as social services.

For instance, for the country’s strategic SGR project, the Mr Majaliwa noted that Samia’s’ administration has disbursed at least Sh762.99 billion for the said project, through which; the Dar es Salaam – Morogoro section (300 km) stands at 97.91 percent of its completion. Besides, the Morogoro – Makutopora section (422 km) is at its 92.23 percent completion rate, whereas the Mwanza – Isaka (km 341) section has been constructed for about 25.75 percent; the construction for the Makutupora – Tabora section (371 km) has reached 4.59 percent. According to the Prime Minister, the construction of the Tabora – Isaka section (165 km) and the Tabora-Kigoma section (506 km) is underway.

Yet for the Nyerere hydroelectric project meant to generate at least 2,115 MW, the government has already disbursed Sh869.93 billion, and the project stands at 83 percent of its implementation.

Addressing the lawmakers, Premier Majaliwa explained that for the improvement of the country’s airport infrastructure, Samia’s administration has used at least Sh20.52 billion, of which the funds were used partly to finalise the purchase of aeroplanes. These included the Boeing 767-300F meant for cargo, two Boeing 737-9 passenger flights, one Boeing 787-8 Dreamliner, and one De Havilland Dash 8-Q400 flight.

The Prime Minister disclosed that four of the purchased flights will arrive in the country before November this year, thus expanding the local and international carrier network of the Air Tanzania Company Limited (ATCL), which is in fact the country’s flag carrier airline.

It is said that the expansion of the network will also instigate the expansion of other economic-based sectors such as tourism, business, and agriculture.

On the other hand, Mr Majaliwa’s speech touched on the Sh30.39 billion disbursed for compassion related to the East African Crude Oil Pipeline Project (EACOP) as well as the payment for ownership shares, which range up to US$131 million.

Besides, the government has disbursed at least Sh39.84 billion, a stake that has been used for the development of the Mkulazi Sugar Factory in Morogoro, owned jointly by the National Social Security Fund (NSSF) and Prison Corporation Sole (PCS), with shareholding structures of 96 and 4 percent, respectively.

“At least Sh39.84 has been disbursed for the factory’s continued development; in fact, the construction is 75 percent complete, and 219 hectors have already been planted with sugarcane seedlings, resulting in an accumulative area of 2,974 hectares, or approximately 83 percent of the target of 3,600 hectares to be planted,” he explained.

On the other hand, the prime minister tabled his office’s 2023/24 budget estimates, asking Parliament to approve Sh173.73 billion for his office and other institutions under his docket as well as Sh165.63 billion for the National Assembly.